Home Renovation Loan Programs Explained

Fannie Mae, Freddie Mac, and FHA Programs Simplified for PA and FL Homeowners and Homebuyers

When it comes to home renovation, financing is often the first hurdle. Fortunately, there are excellent loan programs available to help homeowners and buyers fund renovations—whether it’s upgrading your kitchen, adding energy-efficient features, or repairing structural issues. At Innovative Mortgage Brokers, we specialize in guiding clients in Pennsylvania and Florida through these options, ensuring a smooth, stress-free process.

Here’s a breakdown of three key renovation loan programs—Fannie Mae, Freddie Mac, and FHA—and how we can help you make the most of them.

Fannie Mae Renovation Loans

Fannie Mae offers two renovation-focused products: HomeStyle® Renovation and HomeStyle® Energy loans. These programs cater to homeowners and investors looking to improve their properties.

HomeStyle® Renovation

This program allows for a wide range of repairs, including structural work, health and safety upgrades, and even luxury improvements like swimming pools or ADUs (Accessory Dwelling Units). Borrowers can finance up to 75% of the property’s completed value.

Best For: Major remodeling or repairs, including second homes and investment properties.

HomeStyle® Energy

Designed for energy-efficient upgrades, this program covers everything from solar panels to disaster resiliency improvements. Borrowers can also pay off existing PACE or non-PACE loans for prior energy upgrades.

Best For: Homeowners focusing on energy efficiency and environmental resilience.

Freddie Mac Renovation Loans

Freddie Mac’s offerings, including CHOICERenovation®, CHOICEReno eXPress®, and GreenCHOICE Mortgage, provide flexible options for varying project sizes and goals.

CHOICERenovation®

This program supports major repairs, disaster resiliency improvements, and adding ADUs. It’s ideal for homeowners looking to enhance livability or recover from natural disasters.

Best For: Structural and disaster-prevention renovations.

CHOICEReno eXPress®

For smaller-scale renovations, this program is a quick and simple option. It’s designed for minor repairs or upgrades and allows up to 15% of the after-improved value.

Best For: Small-scale, cost-effective projects.

GreenCHOICE Mortgage

This program focuses on energy-efficient improvements, such as solar panels, electrification, and health-related upgrades like radon mitigation.

Best For: Energy-efficient home improvements.

FHA Renovation Loans

The FHA offers renovation financing through its 203(k) Standard, 203(k) Limited, and Energy Efficient Mortgage (EEM) programs, making it a popular choice for owner-occupied properties.

203(k) Standard

This option is ideal for major remodeling or structural repairs, allowing financing up to 110% of the property’s subject-to-value.

Best For: Larger projects on primary residences.

203(k) Limited

For less extensive repairs, the Limited program covers up to $35,000 in non-structural work, with fewer administrative requirements.

Best For: Small, quick renovations.

Energy Efficient Mortgage (EEM)

This program allows you to finance cost-effective energy improvements above standard FHA limits, such as insulation upgrades or energy-efficient windows.

Best For: Homeowners looking to improve energy efficiency on a budget.

Why Choose Innovative Mortgage Brokers?

At Innovative Mortgage Brokers, we understand that every renovation project is unique. Whether you’re in Pennsylvania or Florida, we’re here to guide you through every step of the loan process. Here’s how we add value:

• Experienced Guidance: With over 13 years of experience, we specialize in finding the right loan program tailored to your needs.
• Comprehensive Support: From helping you evaluate renovation costs to ensuring compliance with lender requirements, we handle the details so you can focus on your project.
• Access to Options: As a broker, we connect you to a wide network of lenders, ensuring competitive rates and terms.
• Streamlined Process: Our technology and expertise reduce hassle and speed up approvals, getting your project funded faster.

Ready to Start Your Renovation Journey?

Whether you’re planning to enhance your home’s value, create a more energy-efficient space, or prepare for the unexpected, Innovative Mortgage Brokers is here to help. Contact us today to discuss your goals and discover the renovation loan that’s right for you.

Let’s turn your dream home into a reality—one renovation at a time!